Why Some Say This Stock Is Overvalued
The Dow is down 7 at 8504, the S&P is up 2 at 897.97, while the Nasdaq is
up 15 at 1378.
Semiconductors are the leaders today, as the Nasdaq is barely rising over its
50-day moving average.
Retailers remain under pressure as
both Wal-Mart
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PowerRating) and
Federated Dept.
Stores
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PowerRating) reported less-than-expected weekly comps. WMT is down .88 at 49.91,
and FD down .94 at 27.98.
McDonalds
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PowerRating) is weak, as Moody’s may downgrade the fast food giant’s
credit rating.
Bank Of
America
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PowerRating) sees fourth-quarter charge offs at $1.2 billion
Yahoo!
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PowerRating) is buying Inktomi
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PowerRating) for $1.65/share.
A negative write-up in Barron’s
sent Weight Watchers
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PowerRating) gapping down this
morning, but it’s managed to rally off its lows. Barron’s says the stock may be
fully valued at 29X next year’s earnings. WTW is trading at 46.58, down .57.
A $3.5 billion verdict against
Exxon Mobil
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PowerRating) was reversed, sending the
stock up. XOM is trading at 36.07, up .37.
Strong sectors are: semiconductors, computer technology, biotech, while weak
sectors are retail, banks, and brokers.